SC to examine whether challenges to electoral bonds scheme need consideration by Constitution Bench

Electoral bonds may be purchased by a person, who is a citizen of India, or incorporated or established in India.

The Supreme Court on March 20 agreed to examine on April 11 as to whether the petitions challenging the electoral bonds scheme needs to be considered by a Constitution Bench.

Senior counsel Dushyant Dave, who appeared for the petitioners, told the court that the case bears Constitutional importance and could have an impact on the democracy of the country.

Lawyer Shadan Farasat, who represented another petitioner, argued that electoral bonds are an issue that could have a direct impact on funding of political parties and urged the court to place the case before a Constitution Bench as it deserves an authoritative pronouncement.

Electoral bonds, which were introduced in the 2017 Finance Act, is an instrument like bearer bond. Electoral bonds may be purchased by a person, who is a citizen of India, or incorporated or established in India. An individual can buy electoral bonds, either singly or jointly with other individuals.

Only political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one percent of votes polled in the last general election to the House of the People or the Legislative Assembly of the State, are eligible to receive electoral bonds.

According to the notification, electoral bonds shall be encashed by an eligible political party only through a bank account with an authorised bank.

The apex court had in April 2019 declined to stay the Centre's Electoral Bond Scheme 2018 and made it clear that it would accord an in-depth hearing on the pleas as the Centre and the EC have raised "weighty issues" having "tremendous bearing on the sanctity of the electoral process in the country".

The Centre and the EC had earlier taken contrary stands in the court over political funding, with the government wanting to maintain anonymity of donors of bonds and the poll panel batting for revealing names of donors for transparency.